Control Student Loans
At The Law Offices Of Dax J. Miller, we know student loans rank as one of greatest burdens on your personal finances. You go to school to get an education and you leave school saddled with so much debt that you wonder why you ever went to school to begin with. Paying your rent and car payment suddenly fall secondary to paying a seemingly endless account balance that never appears to decrease. Speaking to an Indiana Student Loan Attorney may help you get a better understanding of how you can manage your student loans in the future.
What options you have with your student loans will depend in large part on whether they are federal or private student loan. It may also depend on whether you are in good standing or delinquent with your student loans.
Federal Student Loans Allow More Flexible Repayment Plans
Federal student loans are issued and backed by the Department of Education. They typically enjoy much more lenient, flexible repayment plans that typically involve some form of “income-based repayment”. These types of loans usually also allow for varying forbearance or deferment periods that will allow you to skip payments altogether if you encounter financial obstacles. This program is part of the William D. Ford Federal Direct Loan Program.
Private Student Loans Impose Stricter Repayment Requirements
Private student loans are issued and held by banks like JPMorgan Chase Bank, Bank of America and Wells Fargo Bank and are generally more stringent with less flexibility in repayment and deferment.
Both types of loans usually allow what is referred to as “consolidation“. Consolidation involves combining all of a single type (federal or private) of student loans into one loan account thereby simplifying your student loan situation. Coincidentally, consolidation normally results in a lower payment as well.
Whether you are allowed to consolidate and if it is in your best interest, are questions to discuss with your Indiana Student Loan Attorney.
We have the knowledge and experience to assess your student loan situation and recommend the most cost-effective, common sense approach.
How Big A Deal Are Student Loans?
Student loan debt has risen to more than $1.4 trillion dollars making it second only to mortgage debt in terms of the sheer amount of debt in the United States. To put that in perspective, the total student loan debt in America is more than the total GDPs of Australia, New Zealand and Ireland combined.
What If I have Already Fallen Behind?
Just because you fall behind on student loan debt does not mean there is not hope. If your student loans are federal student loans, you may have the option of student loan rehabilitation. Student loan rehabilitation may allow you get back in good standing with your loans and even reduce your payment to as low as $5.00 per month if your situation warrants it.
I Have Ten Different Student Loans - What Should I Do?
If your student loans are in good standing and you are struggling to make payments, then student loan consolidation may help you bring all of your accounts under one umbrella with one affordable payment. Most of the time, we can even reduce your student loan payment to what you can afford based on your current income.